TaxTMI 
TaxTMI 
2026 (10) TMI 276
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...., we shall take up ITA No. 9501/Mum/2025. The Department has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 2,00,00,000/- made by the Assessing Officer under Section 69A of the Income Tax Act, 1961, by failing to appreciate that the investment received from M/s Saffire Export & Agency Pvt Ltd was a pre-arranged accommodation entry and not a genuine business transaction. 2. The Ld. CIT(A) erred in law by placing undue reliance on the form of the transaction (banking channels, debenture certificates, and trust deeds) while completely ignoring the substance, despite specific incriminating material from the Invest....
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....of providing accommodation entries to beneficiaries like the appellant. 7. The Appellant craves leave to add, amend, alter, OR withdraw any of the grounds of appeal at the time of OR before the hearing of the appeal. 3. The brief facts, as emanating from the record, are that the assessee filed its return of income for Assessment Year 2013-14 on 31.03.2015 declaring total income of Rs.5,95,22,380/-. The return was selected for scrutiny and assessment under section 143(3) of the Act was completed on 28.03.2016 accepting the returned income. During the relevant previous year, the assessee had issued 100 Secured Redeemable Non-Convertible Debentures (NCDs) of face value of Rs.1,00,00,000/- each, aggregating to Rs.100 crores, for whi....
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....action and that invocation of section 69A of the Act was not sustainable. 7. Aggrieved by the deletion of the addition, the Revenue is in appeal before us raising Grounds Nos. 1 to 7 challenging the deletion of the addition of Rs.2,00,00,000/- made under section 69A of the Act, the discharge of the primary onus, the applicability of the test of human probabilities and the non-grant of an opportunity of cross-examination. The assessee has also filed Cross-Objection challenging the validity of the reopening under section 147 of the Act. 8. We have heard the rival submissions and perused the material available on record. Ground Nos. 1 to 6 raised by the Revenue relate to the deletion of the addition of Rs.2,00,00,000/- made under section....
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....d financial statements, board resolutions, BSE listing permissions and debenture trust documents. The AO, however, has not brought any specific material on record to establish that the documents furnished by the assessee were false or that the amount received against the NCDs represented the assessee's own unexplained money. 12. The Revenue has also relied upon the test of human probabilities with reference to the decisions of the Hon'ble Supreme Court in CIT v. Durga Prasad More and Sumati Dayal v. CIT. However, the said principle cannot, by itself, substitute for material evidence establishing that the assessee's own unexplained funds were routed through the subscriber. In the present case, the transaction was supported by ....